FIRE Number
Your FIRE number is the portfolio size needed to retire early and live off investment returns indefinitely. It is calculated as your annual expenses multiplied by 25 (the inverse of the 4% safe withdrawal rate).
$60,000 annual expenses → $1,500,000 FIRE number.
FIRE = Financial Independence, Retire Early. The FIRE number assumes a 4% annual withdrawal rate, which is considered sustainable indefinitely based on historical market returns.
Annual expenses × 25 = FIRE number. If you spend $50,000/year, you need $1,250,000. If you spend $80,000/year, you need $2,000,000.
Variants include Lean FIRE (frugal lifestyle, smaller number), Fat FIRE (generous lifestyle, larger number), and Coast FIRE (stop contributing, let existing investments grow to reach the full number).
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Open calculator →Related terms
- Safe Withdrawal Rate (SWR)
- The safe withdrawal rate is the maximum percentage of a retirement portfolio you can withdraw annually without running out of money over a given time horizon. The 4% rule is the most widely cited guideline.
- Financial Independence (FI)
- Financial independence means having enough invested assets to cover your living expenses indefinitely without working. It is the point where your investment returns equal or exceed your annual spending.
- Compound Interest
- Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It causes savings and investments to grow exponentially over time.